Total factor productivity growth accounting in the construction industry of Singapore

2003 ◽  
Vol 21 (7) ◽  
pp. 707-718 ◽  
Author(s):  
Mao Zhi ◽  
Goh Bee Hua ◽  
Shou Qing Wang ◽  
George Ofori
Keyword(s):  
Construction Industry ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
Total Factor Productivity Growth ◽  
Growth Accounting ◽  
Factor Productivity

Total factor productivity growth and its decomposition in the Chinese construction industry since China's accession to the World Trade Organization

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Yuhe Wang ◽  
Gui Ye ◽  
Chenli Zheng ◽  
Shilian Zhang
Keyword(s):  
World Trade Organization ◽  
Construction Industry ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
World Trade ◽  
Total Factor Productivity Growth ◽  
Factor Productivity ◽  
Efficiency Change ◽  
Content Type ◽  
The World

PurposeSince China's accession of the World Trade Organization (WTO), its construction industry has attained unprecedented growth. However, for the sources of this enormous growth, a controversy regarding the total factor productivity growth (TFPG) still remains in production practice and extant studies. In view of this, the purpose of this paper is to measure TFPG and to explore its sources in the industry post-WTO accession.Design/methodology/approachThis study presents an innovative source analysis of TFPG. Stochastic frontier approach is adopted to measure TFPG and to explore its sources by decomposing TFPG into technical progress (TP), technical efficiency change (TEC), allocative efficiency change (AEC) and scale efficiency change (SEC). Although China joined WTO in 2001, to provide an effective baseline, the study period is from 2000 to 2017.FindingsThe empirical results reveal that TFPG presented an overall downward evolutionary trend, but it still maintained a high growth post-WTO accession. From the perspective of decomposition, TP was the main source of TFPG. Furthermore, as a neglected source, interaction effects among TP, TEC, AEC and SEC have been demonstrated to have a significant influence on the cumulative TFPG.Practical implicationsTo make the results be reliable, the authors discuss the empirical findings mainly by revealing the reasons behind the evolutions of TFPG and its sources. Based on these revealed reasons, government and policy makers can further refine and summarize some more detailed and targeted policy implications to improve TFPG.Originality/valueBy providing many empirical evidences to solve the aforesaid TFPG controversy, this paper, therefore, enriches the body of knowledge on growth theories, especially at the level of industrial economics.

Total factor productivity growth and its contribution: lessons from the Chinese construction industry pre- and post-2008 financial crisis

2020 ◽  
Vol 27 (10) ◽  
pp. 2911-2929
Author(s):  
Yuhe Wang ◽  
Gui Ye ◽  
Yuxin Zhang ◽  
Ping Mu ◽  
Hongxia Wang
Keyword(s):  
Financial Crisis ◽  
Construction Industry ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
Decisive Role ◽  
Total Factor Productivity Growth ◽  
Factor Productivity ◽  
2008 Financial Crisis ◽  
Content Type ◽  
Crisis Period

PurposeIn response to the 2008 financial crisis, the performance of the Chinese construction industry seems to be more successful, especially in total factor productivity growth (TFPG) and its contribution (TFPGC). Hence, the purpose of this paper is to investigate and reveal the potential successful lessons in this regard.Design/methodology/approachThis study is conducted innovatively based on a special comparative analysis of TFPG and TFPGC between pre- and post-2008 financial crisis. Solow Residual Approach is used to measure TFPG and TFPGC for the period 2002–2016. Given that the crisis hit China at the end of 2008, the pre-2008 financial crisis period is from 2002 to 2008, and the post-2008 financial crisis period is limited to 2009–2016.FindingsThe results indicate that the industry indeed has better performance in promoting TFPG and TFPGC, TFP thus achieved significant accumulative growth before and after the crisis. However, from an evolutionary perspective, both TFPG and TFPGC presented an overall downward trend from before the crisis to after the crisis. Further, the game between the centrally planned economy and the market-oriented economy was identified and revealed as the essential reason behind the evolution of TFPG and TFPGC.Practical implicationsSome valuable lessons for policies and practices in promoting TFPG and TFPGC were summarized and learned from the Chinese experience, such as reducing administrative intervention and making the construction market play a decisive role.Originality/valueThis study provides some new empirical evidence to enrich the overall body of knowledge on growth theory, especially in promoting TFPG and TFPGC.

Total Factor Productivity Growth and the Role of Externalities

1997 ◽  
Vol 162 ◽  
pp. 99-111 ◽  
Author(s):  
Nicholas Oulton
Keyword(s):  
Economic Growth ◽  
Total Factor Productivity ◽  
Productivity Growth ◽  
Physical Capital ◽  
Total Factor Productivity Growth ◽  
Growth Accounting ◽  
Factor Productivity ◽  
New Evidence

This paper argues that the greater part of economic growth can be accounted for by the accumulation of human and physical capital. The role of externalities is relatively small. This view is defended by reviewing the most sophisticated growth accounting studies and also by presenting some new evidence on the growth of total factor productivity in 53 countries over the period 1965 to 1990.

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